How to get yourself an instant 10% pay rise

Households are being squeezed by soaring costs but there are still ways to put more pounds in your pocket

Families were warned last week to expect their standard of living to stand still this year as pay rises are swallowed up by the soaring cost of fuel and food.

However, the typical household could give itself a 10% pay rise in just one day by making use of all available savings, analysts said.

Mervyn King, the Bank of England governor, said the income squeeze would coincide with weakening house prices, and borrowers could expect little relief from falling interest rates as inflation remained stubbornly above target.

To combat the economic gloom, money-saving experts are urging consumers to take matters into their own hands. Martin Lewis, founder of Moneysavingexpert , said: "Ordinary people can boost their weekly spending power by becoming more aggressive about their finances and stopping waste. If I spent one day with normal families with typical income I could save them £5,000."